No Depreciation allowable on Non-Compete Fee paid to acquire a Going Concern

DCIT Vs Excelex Bio Polymers (P) Ltd. (ITAT Delhi)

The Assessing Officer held that the non-compete fee cannot be allowed as a revenue expenditure u/s 37(1). He took into consideration the amendment by the Finance Act, 1998 providing for allowance of depreciation on `intangible assets’ in the nature of know-how, patents, copyright, trademarks, licenses, franchises or any other business of commercial right of similar nature acquired on or after 01.04.1998. It was opined that the payment of non-compete fee did

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